Programs
Gap funding.
Capital that covers the shortfall between what your senior lender will fund and what the deal actually costs. Usually second position, usually short, always deal-specific.
The problem it solves
Your senior lender funds a percentage — of purchase price, of cost, of after-repair value. Whatever they do not fund, you cover. Gap funding is money that fills part of that remainder so a viable deal is not lost purely for want of cash at closing.
Be clear-eyed about the cost
Gap capital sits behind the senior loan. If the deal fails, the senior lender is repaid first and the gap provider absorbs losses before the first lienholder does. That subordinate position is priced accordingly, and it should be.
Before you take it
- Check your senior loan documents. Many prohibit subordinate financing outright. Taking it anyway can be a default.
- Model the deal with the gap cost included — not the version without it.
- Know the payoff order and confirm the exit still clears both positions with room left.
- Get the intercreditor terms in writing before closing, not after.
Why this page exists
Search for gap funding and much of what comes back is either unrelated government grant programmes or thinly disguised advance-fee schemes. If anyone asks you for money up front to arrange funding, that is your answer. We never charge an upfront fee.
Typical structure
Published market figures, not our rates. Full table and sources on the rates page.
- Position
- Second
- Starts at
- 12.00%
- Typical range
- 12% – 18%
- Term
- Short term
- Max combined LTV
- —
What to send
- The senior lender’s term sheet
- Total capital required
- Size of the gap
- Your exit and timeline
- Entity and deal history
Easy Lending USA is not a lender, a bank, or a mortgage broker. We do not make credit decisions or fund loans. All programs are business-purpose loans secured by non-owner-occupied investment real estate and made to business entities.
Related programs
Before taking second-position money, ask whether the senior lender will simply lend more — first-position pricing on hard money or bridge is almost always cheaper than a separate second. Where the shortfall is rehab cost rather than acquisition cash, fix and flip may fund it in draws instead.
We also cover where gap capital actually comes from and how second-position money is structured. All seven structures are on the programs page, pricing with sources on the rates page, and the FAQ answers how we are paid.